Dear Ms. Sujatha,
Pl. go through the Factories Act, there is a provision for accumulation and encashment also.
For arriving 240 days you should consider the EL availed but the employee will be getting leaves @ 1 for each 20days worked on the actual working days. In some cases like seperations and all eventhough the employees has not worked we have to calculate the EL and pay the amount along with the final settlement, even the same case with the casual workers also.
Yes - Sundays and Holidays are not part of EL, they are to be exclused where as they are part in case of CL & SL.
Every organization will have their own leave rules but the quantam of leaves should not be less than what specified in Factories Act.
As far as leave (EL) encashment is concerned either you have to allow the employee to avail / encash or accumulate with out any restriction but no way it is going to be lapsed. We should restrict the accumulation part failing which it is going to be a burden to the organization.
Thanks and regards - kameswarao
From India, Hyderabad
30Pl. go through the Factories Act, there is a provision for accumulation and encashment also.
For arriving 240 days you should consider the EL availed but the employee will be getting leaves @ 1 for each 20days worked on the actual working days. In some cases like seperations and all eventhough the employees has not worked we have to calculate the EL and pay the amount along with the final settlement, even the same case with the casual workers also.
Yes - Sundays and Holidays are not part of EL, they are to be exclused where as they are part in case of CL & SL.
Every organization will have their own leave rules but the quantam of leaves should not be less than what specified in Factories Act.
As far as leave (EL) encashment is concerned either you have to allow the employee to avail / encash or accumulate with out any restriction but no way it is going to be lapsed. We should restrict the accumulation part failing which it is going to be a burden to the organization.
Thanks and regards - kameswarao
From India, Hyderabad
Dear Mr. Kameswar Rao, Thank you so much for clearning my doubts and yes, you are right we should restrict the accumulation of ELs. Thanks & Regards, Sujatha
From India, Bangalore
From India, Bangalore
Hi Priya!
As far as i know most of the companies are calculating ELs based on employees last drawn basic salary per day and only few are calculating based on last drawn Gross Salary.
You can opt the basic salary one to reduce the cost to the company.
Thanks & Regards,
Sujatha
From India, Bangalore
As far as i know most of the companies are calculating ELs based on employees last drawn basic salary per day and only few are calculating based on last drawn Gross Salary.
You can opt the basic salary one to reduce the cost to the company.
Thanks & Regards,
Sujatha
From India, Bangalore
Dear All,
SL can be accumulated till it reaches the number of 21 including that year SLs.
But SL can't be encashed, the same is been detailed in Factories Act, also.
EL is paid @last drawn basic salary only, but very true said by Sujatha that some company pay it @gross salary also.
Regards,
Amit Seth.
From India, Ahmadabad
SL can be accumulated till it reaches the number of 21 including that year SLs.
But SL can't be encashed, the same is been detailed in Factories Act, also.
EL is paid @last drawn basic salary only, but very true said by Sujatha that some company pay it @gross salary also.
Regards,
Amit Seth.
From India, Ahmadabad
Dear Sujatha,
U can do one thing, just put the leave policy act in front of ur management and negotiate with them, inform them wtever we have been doing that is Unfair labour practice, the labour inspection or officer can bound us to implement the leave policy as per the act with notice.
Do one thing if ur management says at the sepration we will encash the EL then as and when a employee ELs becomes due, u can sanction their Earned leaves and let them go for leaves after reserving 45 days leaves as per ur policy.
regards
mukesh
From India, Mumbai
U can do one thing, just put the leave policy act in front of ur management and negotiate with them, inform them wtever we have been doing that is Unfair labour practice, the labour inspection or officer can bound us to implement the leave policy as per the act with notice.
Do one thing if ur management says at the sepration we will encash the EL then as and when a employee ELs becomes due, u can sanction their Earned leaves and let them go for leaves after reserving 45 days leaves as per ur policy.
regards
mukesh
From India, Mumbai
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